4 Disadvantages of Bitcoin Cloud Mining

Cloud mining is increasingly becoming a popular way of acquiring Bitcoins because of the immense benefits it comes with. While you are at liberty to buy and install your cloud mining infrastructure, it’s cost-effective to sign up to a cloud mining contract, and if you have the budget, you can hire your miners to mine Bitcoins for you. While bitcoin cloud mining has a host of advantages, it comes with its fair share of disadvantages. Let’s look at them:

1) Likelihood of being scammed by some dubious Bitcoin cloud mining companies

The rapid demand for Bitcoin cloud mining has attracted a lot of scammers. These scammers have hurriedly created websites disguising themselves as Bitcoin cloud mining companies. They advertise non-existent cloud mining facilities and exploit unsuspecting Bitcoin miners. Once you sign with those websites and deposit money to their account, you’ll never hear from them again. Some offer the cloud hosting services at the onset but close shop indefinitely and disappear once they have a pool of miners who have paid for the services. It’s a good idea to research the Bitcoin cloud mining company first before you pay anything.

2) Bitcoin cloud mining poses security risks

Cloud mining servers are not the most secure out there. Because many miners are using the same server, your Bitcoin wallet can be breached. Public networks are the perfect ground for hackers to strike because they are not entirely protected. So you should be very careful when choosing a cloud mining company. The best way to deal with this security issue is to protect your Bitcoin wallet. Don’t enter your private keys frequently. In fact, it’s advisable to buy a hardware wallet. It the best option to keep hackers at bay because it’s not connected to the internet.

3) Increased learning curve for Bitcoin mining

Changing up to cloud mining can be a steep learning curve because you’ll have to acquaint yourself with how cloud mining systems work first. This can be a disadvantage because you’ll waste valuable time, which you could use to mine Bitcoins.

4) Inability to change the Bitcoin mining hardware and software

Let’s face it; you would always like to change your hardware and software to align with the current technological developments. That cannot happen with cloud mining. The companies control everything, and you cannot change anything nor do any customization on their cloud servers.

Conclusion

Well, those are the disadvantages of Bitcoin cloud mining system. This highlight underscores the importance of conducting a cost-benefit analysis before you decide to go for cloud mining or installing your mining infrastructure. Choose one that promises greater profitability.